Littleton market owners hit with campaign-finance fine

State: Donelans in Littleton violated campaign-finance laws

By Rick Sobey, Sun Staff

Updated:
03/26/2013 09:05:23 AM EDT

LITTLETON -- The co-owners of Donelan's Supermarkets recently paid a $25,000 fine to the Massachusetts Office of Campaign and Political Finance (OCPF) after the state office found them "disguising the true source of contributions and making excess contributions" to Littleton selectmen candidates Alex McCurdy and Rich Carter.

According to a March 22 disposition agreement between the Donelans and OCPF, John and Joseph Donelan have made a $25,000 payment to the state's general fund to resolve the campaign-finance violations from 2009, 2010 and 2012. The Donelans also agreed not to make any political contributions until Jan. 1, 2016.

"We are very pleased this civil matter has been resolved," according to a written statement from John and Joseph Donelan. "We are looking forward to focusing all of our energy into what we love and do best, running our family business and serving our valued customers."

They declined to discuss the matter further.

In 2009, 2010 and 2012, the Donelans provided $8,000 to family members and personal friends who then donated the money in their own names to the selectmen candidates, McCurdy and Carter, according to OCPF. Contributors are not allowed to disguise the true origin of campaign donations, according to Jason Tait, director of communication and public education for OCPF.

The Donelans said their motivation for using family and friends to make campaign contributions was to remain publicly neutral in Littleton's local elections, according to the disposition agreement.

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In addition, Tait said an individual can donate a maximum of $500 a year to a candidate, so the Donelans also violated that clause. The total amount of excess contributions to McCurdy and Carter was $5,000.

OCPF found that the Donelans used family and friends as intermediaries to contribute $5,000 in 2009 and 2012 to the Committee to Elect Alex McCurdy, and $3,000 in 2010 to the Committee to Elect Rich Carter.

However, the selectmen candidates didn't know that the contributions they received were disguised donations from the Donelans, according to OCPF.

"I was not aware that the money was going from the Donelans to the intermediaries and then to me," said McCurdy, the town's former fire chief who was elected to three-year terms in 2009 and 2012. "I did know one of the donations was from a close associate of the Donelans, but it didn't particularly alarm me. I never thought there was an exchange of money going on."

McCurdy said he has received letters from OCPF about the Donelans' campaign-finance violations, and he was found "not culpable with regard to where the funds came from," he said.

"But the way the state law reads, not knowing is not an excuse," McCurdy said. "So they assessed me a fine of $500 and cleared me of the matter any further. It's unfortunate it happened, but it is what it is."

Carter, who lost a tight 2010 election against incumbent Joe Knox and candidate Gregg Champney, was also fined $500. Carter did not respond to three messages left on his cellphone Monday.

"I have no idea why the Donelans would have done this. I was pretty surprised by it," said Champney, the selectmen chairman. "I've known the Donelans in town for years, and I don't think this had anything to do with me personally. The only thing I can think of is Rich Carter was supported by Alex McCurdy, who was supported by the Donelans."

McCurdy was also perplexed as to why the Donelans would have committed these violations.

"Only Mr. Donelan has an explanation for that," McCurdy said.

If McCurdy and Carter run again for office, the candidates and their committees will need to "create and implement a procedure to screen contributions received to ensure compliance with the campaign finance law," according to an OCPF letter to each candidate.

Tait said that OCPF learned about these violations through a complaint, but he would not reveal the source's identity.

Since February 2009, Tait said there have been nine disposition agreements across the state. The last disposition agreement was in March 2012, which had to do with electioneering communications with the Cape Wind project. A notable disposition agreement was in 2010 when gubernatorial candidate Christy Mihos paid $70,000 to the state for campaign-finance violations.

Donelan's Supermarkets was founded in 1948 in Littleton, and the local chain expanded to Acton and Lincoln over the next several years, according to its website. In 1992, Donelan's opened its fourth location in Groton, and the local business added a fifth location in Pepperell in 1994. Donelan's opened its sixth store in Wayland a year later.

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